New Home Sales Jump To 7-Month-High, Despite Massive Downward Revisions

Having rebounded from the mid-year bloodbath, analysts expected new home sales to accelerate further in November. They were right but there were huge historical revisions that left the final SAAR a big miss. New home sales rose 12.4% MoM (smashing the +3.4% MoM expected) BUT that was because October was revised from +0.4% MoM to -8.4%!!!

Source: Bloomberg

The series saw huge downward revisions over the past 3 months…

New home sales remain down 14.0% year-over-year. This left the SAAR at 744k, well below the 770k expected, but, thanks to the huge revisions, still the highest since April 2021…

Source: Bloomberg

Median and average home prices soared to a new record high…

For context, home prices are rising 3x to 4x faster than during the prior housing bubble.

Time to double-turbo that taper, Mr.Powell!

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